Nepal | September 24, 2020

Fiscal-end pressure weighs on share market

Investors in wait-and-see for Monetary Policy

Himalayan News Service
Share Now:

Kathmandu, July 13

The country’s sole secondary market continued to witness selling pressure in the trading week between July 7 and 11, as share investors reeled under pressure to pay interest on marginal loans to banks and financial institutions with the fiscal year ending on July 16.

At the same time, they are awaiting the Monetary Policy for 2019-20, which was scheduled to be announced on July 12, but has been postponed.

The date for the announcement has not been fixed yet.

“Investors are currently selling shares to maintain their balance and pay fiscal year-end interests to BFIs and taxes,” said Radha Pokharel, chairperson of Nepal Pujibazar Laganikarta Sangh, adding that share investors are eagerly awaiting the monetary policy, hoping for provisions that will be favourable for the secondary market.

Consequently, Nepal Stock Exchange index was in downward trend in review week, slipping by 0.95 per cent or 11.93 points. The sensitive index also fell by 1.15 per cent or 3.14 points to 268.33 points and float index dipped by 0.93 per cent or 0.87 point to 91.72 points.

In the review period, weekly turnover dropped by 1.36 per cent as compared to the previous week to Rs 2.63 billion. In the previous week, the market had witnessed turnover of Rs 2.66 billion. Likewise, the daily average turnover stood at Rs 526.67 million, down 1.36 per cent compared to previous week’s Rs 533.94 million.

In the review week, trading of mutual funds plummeted by 88.21 per cent against the previous week to Rs 8.97 million. In the previous week, mutual funds had witnessed turnover of Rs 76.05 million.

The secondary market had opened at 1,260.50 points on Sunday and fell by 4.42 points by end of first trading day. On Monday, market again dipped by 8.70 points. On Tuesday, however, it recovered some of the losses by inching up 2.92 points. The optimism was not sustained, though and the local bourse shed 1.12 points on Wednesday and slipped by 0.62 point on Thursday to close the week at 1,248.55 points.

In the review week, finance and hydropower subgroups landed in the green zone.

The finance subgroup went up by 0.54 per cent or 3.35 points to 619.54 points and hydropower sub-index inched up by 0.01 per cent or 0.20 point to 1,188.55 points.

Meanwhile, life insurance subgroup was the biggest loser of the week, dropping by 1.68 per cent or 113.16 points due to share price of Nepal Life Insurance descending by six rupees to Rs 889. Similarly, non-life insurance also descended by 1.59 per cent or 81.70 points to 5,044.26 points.

Others sub-index lost 1.58 per cent or 11.43 points to rest at 710.83 points.

Manufacturing subgroup fell by 1.50 per cent or 40.08 points to 2,635.75 points and microfinance sub-index also went down by 1.22 per cent or 17.68 points to 1,424.58 points. Similarly, hotels landed at 2,031.40 points, down 1.16 per cent or 23.94 points and banking subgroup fell by 0.76 per cent or 8.64 points to 1,126.77 points.

Trading subgroup dropped by 0.51 per cent or 1.34 points to 259.85 points and development banks fell by 0.31 per cent or 5.02 points to 1,595.34 points.

In the review week, Civil Bank (Promoter Share) was the leader in terms of weekly turnover with Rs 175.36 million. It was followed by Nepal Bank with Rs 166.84 million, Civil Bank with Rs 137.41 million, Prabhu Bank (Promoter Share) with Rs 114.57 million and Mega Bank with Rs 106.43 million.

In terms of weekly trading volume too Civil Bank (Promoter Share) took the lead with 1,753,000 of its shares changing hands. Civil Bank with 874,000 shares, Prabhu Bank (Promoter Share) with 670,000 shares, Mega Bank Nepal with 502,000 shares and Nepal Bank with 494,000 shares followed suit.

Meanwhile, Infinity Laghubitta Bittiya Sanstha was the forerunner in terms of number of transactions with 2,697 deals.

Civil Bank with 1,734, Swabhimann Laghubitta Bittiya Sanstha with 1,548, Mega Bank Nepal with 1,480 and Upper Tamakoshi Hydropower with 1,128 transactions rounded up the top five in this category.

A version of this article appears in print on July 14, 2019 of The Himalayan Times.

Follow The Himalayan Times on Twitter and Facebook

Recommended Stories:

More from The Himalayan Times:

As US surpasses 200,000 COVID-19 deaths, Wisconsin sounds alarm over surges in cases

NEW YORK: Wisconsin Governor Tony Evers on Tuesday declared a new public health emergency and extended a face mask mandate into November to fight a coronavirus flareup in his state, as the number of people who have died across the United States since the pandemic began passed 200,000. In-pers Read More...

Govt urged to implement apex court’s order on jailbirds

SC order aims to avoid crowds in prisons KATHMANDU, SEPTEMBER 22 The National Human Rights Commission has urged the government to implement provisions stipulated in the Criminal Offences (Determination and Execution of Sentence) Act-2017, for improvement of prison conditions. The NHRC made th Read More...

Code of conduct vital in journalism: Prez

KATHMANDU, SEPTEMBER 22 President Bidhya Devi Bhandari has called for journalists to fully abide by the code of conduct for consolidation of democracy. Addressing the 51st anniversary of the Press Council Nepal in Shital Niwas here today, the head of the state underscored the need of compl Read More...

Probe into prisoner’s death sought

KATHMANDU, SEPTEMBER 22 Kin of a prisoner, who allegedly died of COVID-19 while undergoing treatment at Bir Hospital, have demanded investigation into the death. Ram Lakhan Jaiwal, 63, of Siddhartha Municipality-5, Rupandehi died at the hospital on Saturday. He had been serving sentence in the Read More...

Attempts to dismiss rape exposed, ward chair chased off

BARA, SEPTEMBER 22 There are reports of attempts to cover up a rape incident in Subarna Rural Municipality, Bara. What is worse, an elected local representative is learnt to have been involved in such attempts. On Friday evening, a 12-year-old girl was raped in Auraiya in Subarna Rural Municip Read More...

Schools in Byas moot possibility of physical classes

DAMAULI, SEPTEMBER 22 Byas Municipality today held a meeting with head teachers and principals of community and private schools to find a way for reopening schools that have been shut for a long time due to COVID-19. The municipality held a meeting to discuss the possibility of opening sch Read More...

126 lost lives in Gandaki landslides, floods this monsoon

POKHARA, SEPTEMBER 22 As many as 126 people lost their lives to natural disasters such as floods and landslides in Gandaki Province this monsoon. Gandaki Province Minister of Internal Affairs and Law Hari Bahadur Chuman said that most of the casualties happened in Myagdi and Baglung districts. Read More...

Probe panel recommends action against three cops

DHANGADI, SEPTEMBER 22 A probe committee formed to investigate the death of Amar Bahadur Chand, who died in Kailali Police Custody, has recommended action against three police personnel. Chand had died in the toilet of Bahuliya Border Police Post on August 12. The probe committee led by SP Raj Read More...